{"id":63092,"date":"2022-06-17T18:19:24","date_gmt":"2022-06-17T15:19:24","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=63092"},"modified":"2025-09-05T21:59:44","modified_gmt":"2025-09-05T18:59:44","slug":"nexo-ceo-compares-crypto-market-crisis-to-1907-bank-panic","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/nexo-ceo-compares-crypto-market-crisis-to-1907-bank-panic\/","title":{"rendered":"Nexo CEO compares crypto-market crisis to 1907 bank panic"},"content":{"rendered":"<p>Nexo co-founder and CEO Antoni Trenchev compared the current plunge in the cryptocurrency market to the <a href=\\\"https:\/\/en.wikipedia.org\/wiki\/Panic_of_1907\\\">panic of 1907<\/a>. In an interview with Bloomberg, he noted that stronger players must come to the aid of their peers in an effort to prevent a collapse of the industry.<\/p>\n<figure class=\\\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\\\">\n<div class=\\\"wp-block-embed__wrapper\\\"><iframe loading=\\\"lazy\\\" title=\\\"Nexo\u2019s Antoni Trenchev on Bloomberg: Crypto heading for acquisitions \u2013 we plan helping\\\" width=\\\"500\\\" height=\\\"281\\\" src=\\\"https:\/\/www.youtube.com\/embed\/EJ_GaG2KxDE?feature=oembed\\\" frameborder=\\\"0\\\" allow=\\\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\\\" referrerpolicy=\\\"strict-origin-when-cross-origin\\\" allowfullscreen><\/iframe><\/div>\n<\/figure>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cHonestly, this reminds me of the panic of 1907, when J.P. Morgan was forced to intervene with his own funds, and then unite all solvent players to fix the situation. This happened before the <span data-descr=\\\"Federal Reserve System\\\" class=\\\"old_tooltip\\\">Federal Reserve System<\/span> appeared, so there was no lender of last resort,\u201d Trenchev said.<\/p>\n<\/blockquote>\n<p>According to him, a similar situation now prevails in the market. Trenchev stressed that the company aims to be part of the solution that will lead to consolidation of the crypto industry.<\/p>\n<p>He said three \u201chousehold\u201d banks on Wall Street approached the platform, hoping to \u201cuse their experience working with creditworthy clients to fix the situation.\u201d In his view, the industry is moving toward <span data-descr=\\\"mergers and acquisitions\\\" class=\\\"old_tooltip\\\">M&#038;A<\/span> deals and consolidation.<\/p>\n<p>Earlier, Nexo <a href=\"https:\/\/u1f987.com\/en\/news\/nexo-proposes-to-acquire-celsiuss-loan-portfolio\">said it was ready<\/a> to acquire Celsius&#8217;s loan portfolio from its competitor \u2014 Celsius. The offer is valid until June 20.<\/p>\n<p>On June 13, 2022, Celsius Network suspended withdrawals and operations on the platform \u201cdue to extreme market conditions.\u201d According to experts, the real cause was a \u201cliquidity crisis,\u201d which prevented the company from making payments to clients.<\/p>\n<p>Some called Celsius&#8217; bankruptcy almost inevitable, and the Securities and Exchange Commissions of five U.S. states began examining the company&#8217;s activities \u201con a priority basis.\u201d<\/p>\n<p>Nexo also collaborated with Three Arrows Capital (3AC) on developing a credit product based on NFT, but it never launched. Trenchev noted that after this the hedge fund approached the platform with a request to issue an unsecured loan, but was refused.<\/p>\n<p>In his view, those that issued unsecured loans to 3AC should be concerned. At the same time, he believes the market will not see a \u201cchain reaction,\u201d as the worst is already behind us.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cI think the things that happened to them are largely already priced in and the selling pressure we observed on Monday and Tuesday,\u201d he explained.<\/p>\n<\/blockquote>\n<p>Earlier in April, Trenchev <a href=\"https:\/\/u1f987.com\/en\/news\/nexo-ceo-forecasts-bitcoin-to-reach-100000-within-a-year\">predicted the bitcoin price would reach $100,000<\/a> in 2022.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nexo co-founder and CEO Antoni Trenchev compared the current plunge in the cryptocurrency market to the panic of 1907. He noted that stronger players must come to the aid of their peers to prevent a collapse of the industry.<\/p>\n","protected":false},"author":1,"featured_media":63093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1315,1138],"class_list":["post-63092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-nexo","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/63092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=63092"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/63092\/revisions"}],"predecessor-version":[{"id":63094,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/63092\/revisions\/63094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/63093"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=63092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=63092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=63092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}